Medicare coverage for dental would reduce out-of-pocket costs by 80%

Expanding Medicare Part B to include coverage for dental services would reduce consumer out-of-pocket spending by more than $530 per person annually—an estimated 80% reduction, according to a new report from the Urban Institute with funding from the Robert Wood Johnson Foundation.

Key findings include:

• Dental spending would increase by 72% for individuals with incomes under the federal poverty level (FPL). Those with incomes over 400% of the FPL would see a 20% increase in Medicare spending.
• Black and Hispanic enrollees would experience the largest percentage increase in dental spending under the policy. However, in dollar terms, spending would increase most for White enrollees.
• Per capita spending increase in dollars, by racial/ethnic background:
• Non-Hispanic White: $1,032
• Hispanic: $530
• Black: $356
• Overall expenditures on dental care would increase by approximately one-third (34%) or $19.4 billion. Total spending for dental services would increase from $841 to $1,129 per capita.

“The benefit design of traditional Medicare lags behind most other kinds of health insurance because it excludes dental coverage, and seniors living with low-income bear the brunt of this omission,” said Katherine Hempstead, senior policy adviser at the Robert Wood Johnson Foundation. “Expanding coverage of dental services through Medicare is an opportunity to increase equity and close longstanding gaps in access to dental services.”

“Our analysis finds that adding a dental benefit to Medicare Part B would result in a substantial increase in the use of and spending on dental care for all beneficiaries,” said Urban Institute lead researcher Anuj Gangopadhyaya. “However, differences in dental spending by enrollee racial and ethnic background and by income group that existed before adding a dental benefit would persist under this policy.”

Read the brief: "Estimating the Cost and Effects of Adding a Dental Benefit to Medicare Part B"